Company Registration No. 07401825 (England and Wales)
Signia Money Limited
Unaudited financial statements
for the year ended 31 October 2021
Pages for filing with the Registrar
Signia Money Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
Signia Money Limited
Statement of financial position
As at 31 October 2021
Page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,844
154
Investments
6
600
600
2,444
754
Current assets
Debtors
7
556,830
369,855
Cash at bank and in hand
549,630
86,814
1,106,460
456,669
Creditors: amounts falling due within one year
8
(585,871)
(192,843)
Net current assets
520,589
263,826
Net assets
523,033
264,580
Capital and reserves
Called up share capital
9
1,861,648
2,999,836
Share premium account
1,884,381
2,436,193
Profit and loss reserves
(3,222,996)
(5,171,449)
Total equity
523,033
264,580
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 October 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Signia Money Limited
Statement of financial position (continued)
As at 31 October 2021
Page 2
The financial statements were approved by the board of directors and authorised for issue on 29 July 2022 and are signed on its behalf by:
Fawzi Kyriakos-Saad
Director
Company Registration No. 07401825
Signia Money Limited
Notes to the financial statements
For the year ended 31 October 2021
Page 3
1
Accounting policies
Company information
Signia Money Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
FKS House, 40-44 Newman Street, Floor 5, London, W1T 1QD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover is recognised as the loan servicing fees from borrowers, for obtaining a loan on the online platform (exclusive of Value Added Tax and trade discounts). These fees are recognised on an accruals basis throughout the life of the loan.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% per annum on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
Signia Money Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
1
Accounting policies (continued)
Page 4
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Signia Money Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
1
Accounting policies (continued)
Page 5
1.6
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Signia Money Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
1
Accounting policies (continued)
Page 6
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
Signia Money Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
Page 7
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
5
6
4
Other gains and losses
2021
2020
£
£
Gain on disposal of intellectual property
2,500,000
On 5 March 2021, certain intellectual property of the company was sold to an unconnected party for cash consideration of £2,500,000. The intellectual property was not previously capitalised on the Balance Sheet and therefore a gain on disposal of £2,500,000 has been recorded in other gains and losses. On 9 March 2021, Fawzi Kyriakos-Saad, the beneficial owner of the Company, gained significant influence over the acquirer of the intellectual property. The Board considers that the intellectual property sale was conducted on an arm’s-length basis.
Signia Money Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
Page 8
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 November 2020
16,725
Additions
1,911
At 31 October 2021
18,636
Depreciation and impairment
At 1 November 2020
16,571
Depreciation charged in the year
221
At 31 October 2021
16,792
Carrying amount
At 31 October 2021
1,844
At 31 October 2020
154
6
Fixed asset investments
2021
2020
£
£
Other investments other than loans
600
600
7
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
50,830
19,664
Corporation tax recoverable
196,191
Amounts owed by group undertakings
506,000
154,000
556,830
369,855
Signia Money Limited
Notes to the financial statements (continued)
For the year ended 31 October 2021
Page 9
8
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
35,234
86,905
Other creditors
550,637
105,938
585,871
192,843
9
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary Shares of 10p each
11,708,290
11,708,290
1,170,829
1,170,829
B Ordinary Shares of 10p each
6,908,192
18,290,068
690,819
1,829,007
18,616,482
29,998,358
1,861,648
2,999,836
There are two classes of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. A ordinary shares rank pari passu to B ordinary shares.
On 1 April 2021, the sole beneficial owner, who is also a Director, withdrew £2,500,000 from the company. This withdrawal represented the settlement of a director's loan account of £310,000 and the remaining £2,190,000 reflected a return of capital.
This reduced the nominal value of B Shares by £1,638,188 and the associated share premium by £551,812.
On 1 April 2021, the sole beneficial owner subscribed for 5,000,000 new B Shares at £0.10 per share.